US copper tariff may impact Indian electronics, chip plans
Empower your mind, elevate your skills
ETtech
President Donald Trump last week announced a steep 50% tariff on copper imports into the US, triggering an alarm across global supply chains and raising concerns in India's electronics and semiconductor industries.While the measure is primarily aimed at boosting domestic copper production in the US, Indian executives said the ripple effects could to some extent disturb India's chip and electronics manufacturing efforts under its semiconductor mission.India's reliance on imported high-purity copper materials could become a serious bottleneck as global trade barriers proliferate and disrupt the supply chain, said industry leaders. They urge the Indian government to move swiftly — not just by streamlining import procedures and BIS certifications but also by investing in the domestic production of high-grade copper alloys and materials essential to the electronics and chip value chain.'Copper is critical for chip wiring, PCBs, interconnects, and power systems,' said Ashok Chandok, president of SEMI India and the India Electronics and Semiconductor Association (IESA). 'India imports a large share of its refined copper and concentrates. Even gold-plated copper wires used in outsourced semiconductor assembly and test units are facing procedural hurdles.'Copper is a critical raw material in electronic manufacturing, widely used in printed circuit boards (PCBs), capacitors, resistors, connectors, relays, and wiring for semiconductor packaging and assembly.Domestic suppliers like Hindustan Copper , Sterlite, and Hindalco do not currently produce the semiconductor-grade copper needed at scale, the IESA president pointed out.Global supply issues and costlier components will increase the manufacturing cost and slow down cost-sensitive semiconductor projects, he said. 'India must not just incentivise fabs but also build upstream resilience — through domestic refining, free trade agreements, and even strategic reserves.'Semiconductors aren't directly hit by tariffs, said Kunal Chaudhary, partner and co-leader of the Inbound Investment Group at EY India. 'But disruptions in copper, critical for chip wiring, are pushing up costs and shifting policy focus. This is slowing India's chip momentum and making things more expensive for global supply chains."Though India has copper smelting and refining capacity, high-purity copper and specialty alloys required for advanced electronics and chipmaking are largely imported, often from countries like China, which offer competitive pricing and advanced processing capabilities. India's own steps, like requiring quality certification on imports, could also affect the industry.'India does not manufacture high-purity copper materials or the special alloys like strips, wires, or sheets required for semiconductors,' said Rajoo Goel, secretary general of the Electronic Industries Association of India. 'These are imported and supplied by a few specialised global manufacturers, many of them in China. Imposing trade barriers like tariffs, Quality Control Orders, or Bureau of Indian Standards certifications without enabling alternatives can disrupt this fragile but essential supply chain,' Goel said.India's semiconductor momentum is in its early stages and blocking imports through regulatory or pricing hurdles could discourage foreign investment and slow the growth, Goel said. 'We need to remove hurdles, not add new ones. Strengthening domestic copper processing will take time — and until then, strategic imports must be facilitated, not impeded,' he warned.India reportedly exported $2 billion worth of copper and copper products in 2024-25, including $360 million, or 17%, to the US. The US is India's third-largest market for copper exports after Saudi Arabia (26%) and China (18%). Any decline in US demands following new tariffs is likely to be absorbed by the domestic industry.'The semiconductor race is not just about fabs,' Chandok said. 'It's about the entire ecosystem — and that begins with secure, affordable, and quality raw materials like copper.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
24 minutes ago
- Indian Express
RBI's record banking system fund infusion is not boosting loan growth
The Reserve Bank of India (RBI) began pumping money into the banking system in December 2024, while the Monetary Policy Committee (MPC) started cutting interest rates in February. However, the MPC's 100 basis points (bps) of rate cuts and the lakhs of crores of money provided by the RBI to the banking system has had little impact on demand for loans. In fact, credit growth has almost halved from the middle of 2024. And economists think loan growth may fall further in the coming months. According to data released on June 30 by the RBI, non-food credit extended by Indian banks was up 9.8 per cent year-on-year (YoY) as at the end of May, down from 11.2 per cent in April and 16.2 per cent a year ago, after excluding for the impact of the merger of HDFC Bank with Housing Development Finance Corporation in July 2023. The sector-wise breakdown makes for similar reading. Take loans to industry, for instance, which showed a growth of just 4.9 per cent YoY at the end of May, down from 6.7 per cent in April and 8.9 per cent a year ago. At the same time, the amount of money the RBI has pushed into the banking system has ballooned. It first cut banks' Cash Reserve Ratio (CRR) by 50 bps in December 2024, after which — through a variety of instruments, such as purchases of government bonds — the Indian central bank added nearly Rs 10 lakh crore into a system that was tight on cash starting the second half of 2024 due to tax outflows and the RBI's own operations in the foreign exchange market. And while the rupee stabilised before the RBI loosened its grip somewhat in 2025, demand for bank loans has continued to weaken even as borrowing costs have fallen. According to RBI data, new bank loans were around 20 bps cheaper in May compared to a year ago. Wasted liquidity surplus? According to J.P. Morgan economists, the continued addition of liquidity into the banking system by the RBI is a futile attempt to bring down lending rates of banks — beyond a point. In a note published earlier this month, the investment bank's economists said 'there is no evidence that liquidity 'causes' credit or deposit growth. If anything, the causality is reversed, with credit driving liquidity growth, through the deposit and Cash Reserve Ratio channel.' As per its analysis, J.P. Morgan found that the entire impact on banks' lending rates from changes in banking system liquidity is because of movements in the interest rate at which banks lend to each other — the 'call rate'. As such, once the call rate declines to a certain level, there is no incremental benefit in terms of a further decline in banks' lending rates from the provision of additional liquidity by the RBI. The central bank, seemingly, has taken note of this too, and in recent days looked to suck out the excess money it has pumped into the banking system. Since June 27, the central bank has removed almost Rs 7 lakh crore. However, given the temporary nature of these operations, much of these removed funds are already back with banks. But even before the RBI began conducting these temporary operations — called variable rate reverse repos — to drain out excess money, banks were already keeping them at a central bank facility in return for a fixed rate of interest of 5.25 per cent. However, the amount banks were choosing to keep at this so-called Standing Deposit Facility has more than quadrupled in the last one year — from a daily average of Rs 58,817 crore in June 2024 to Rs 2.59 lakh crore in June 2025. Clearly, there are few takers for loans from banks. Will the weak loan growth continue? Weakness in demand for loans has been a concern for the MPC, which cut the policy repo rate by a larger-than-expected 50 bps to 5.5 per cent on June 6 to push banks to cut their lending rates faster. But this 'transmission' of policy rate cuts to lending rates of banks — which can take up to one year, although the RBI over the years has tried to make this process faster — depends on a variety of factors. According to Nomura economists Sonal Varma and Aurodeep Nandi, a faster and more complete transmission of changes to the policy repo rate requires not just excess money in the banking system but also a lower credit-deposit (CD) ratio, which is an indicator of the proportion of a bank's deposits sent out as loans. 'The periods of maximum pass-through of policy rate cuts have typically happened in periods when the credit-deposit ratio was much lower in the 70-74 per cent range,' Varma and Nandi said in a report on July 8, adding that the ratio was currently just below 80 per cent. According to them, the RBI's latest bank lending survey is indicative of moderating demand for loans, especially for retail and personal loans, while the global trade uncertainty coupled with rising imports from China is keeping industrial capacity utilisation subdued. As a result, Varma and Nandi see credit growth falling even further to 7-8 per cent by March 2026. Need for loan demand As RBI Governor Sanjay Malhotra noted on June 6, for banks to lower their lending rates, there needs to be demand for loans. And demand for loans depends on the macroeconomic conditions and appetite for credit. Clearly, the fact that the RBI has felt the need to inject so much money into the banking system and reduce the policy repo rate by 100 bps in a matter of months is a sign of weakness in macroeconomic conditions — even if the annual GDP growth rate is seen stable around 6.5 per cent. '…credit demand follows the momentum in economic activity and often continues to rise despite a rise in interest rates. The reverse is also empirically observed. If credit demand is moderate, a reduced interest rate may not boost it over the next 12-24 months. For any impact, it is critical to hold the rate steady for 18-24 months,' the Boston Consulting Group said in a report this month. Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More
Fibre2Fashion
26 minutes ago
- Fibre2Fashion
Creative Director Frontier Raas
Bridal and couture at Frontier Raas are labours of love Founded in 1954 with a vision to celebrate India's rich textile heritage, Frontier Raas has grown from a family-run establishment into a global luxury brand redefining ethnic wear. At the centre of this evolution is Gaurang Batra, Creative Director, who joined the business in 2016 inspired by his father's legacy and driven by a vision to marry tradition with innovation. Armed with a degree in Business and Finance from Northeastern University, Boston, Gaurang brings both creative sensibility and strategic foresight to the table. Under his leadership, the brand now encompasses three dynamic verticals—Frontier Raas, Raas Saris, and Taraasa—each offering a distinct voice within the Indian couture landscape. In this exclusive interview with Fibre2Fashion, Gaurang opens up about sustaining heritage through modern design, expanding globally, prioritising sustainability, and what lies ahead for Frontier Raas in the ever-evolving world of luxury fashion. Frontier Raas has carved a strong identity in the Indian ethnic wear space. What was the original vision when the brand was founded, and how has that evolved over the years? Frontier Raas began in 1954 with a simple yet powerful vision—to celebrate and elevate India's rich textile and design traditions. What started as a family-run store has evolved into a global luxury ethnic brand, deeply respected for its craftsmanship and storytelling. Our ethos has always centred around bridging the past with the present—preserving the soul of traditional artistry while meeting the changing tastes of modern India. Today, our collections reflect that duality, balancing heritage with innovation, timelessness with relevance. Your brand has a strong heritage rooted in traditional craftsmanship. How do you ensure a balance between preserving this legacy and appealing to modern bridal and occasion wear preferences? It is a delicate process—honouring craft while evolving with the times. We do not treat tradition as a limitation but as a foundation to build upon. Whether it is reinterpreting handloom techniques with contemporary silhouettes or infusing heritage motifs into structured lehengas and draped sarees, we always ask: 'How does today's woman want to wear this?' Our aim is to create garments that feel both rooted and current—pieces that tell a story, but are also wearable, light, and adaptable to modern celebrations. Can you share the thought process and craftsmanship that go into curating bridal lehengas and couture pieces that are unique to Frontier Raas? Bridal and couture at Frontier Raas are labours of love. Each piece begins with an idea—often inspired by art, architecture, or archival textiles—and then goes through hundreds of hours of meticulous work by our artisans. Our lehengas and couture pieces often feature a mix of techniques—zardozi, gota, pearl embroidery, mirror work—layered with texture and tonal play. We are involved in every detail, from the placement of a motif to how the garment moves. It is couture, yes, but it is also deeply personal—designed to make the wearer feel radiant, celebrated, and rooted. Many of your designs reflect cultural richness with a contemporary flair. How does the design team draw inspiration while maintaining originality across collections? Our design process is immersive and interdisciplinary. Inspiration can come from a vintage heirloom, a Mughal miniature, or even a contemporary art installation. What grounds us is the depth of craft we work with—when you are innovating within centuries-old techniques, there is always room to discover. We also listen carefully to our clients—their evolving tastes, how they want to express themselves. That constant dialogue ensures that our collections remain original yet resonant. How have bridal and occasion wear trends evolved in recent years, particularly post-pandemic? What are customers looking for today that is different from five years ago? Post-pandemic, there has been a clear move towards intentional, personalised fashion. Brides today want outfits that reflect their individuality, are versatile, and can be restyled beyond the wedding day. They are asking deeper questions, not just about design, but about origin, comfort, and sustainability. We are seeing greater openness to drapes, co-ord sets, and even playful reinterpretations of the lehenga. Daali, our recent collection, is a direct response to this shift—fluid, expressive, and rooted without being traditional in the usual sense. How are consumer preferences shifting in terms of silhouette, fabric, and functionality in traditional wear, especially as cross-cultural weddings and fusion fashion gain popularity? Consumers today want options that travel across cultures and contexts. They want traditional fabrics in modern forms—lightweight organzas in structured gowns, or lehengas with utility blouses. Functionality and comfort are no longer negotiable. And cross-cultural weddings are pushing us to think beyond the expected—blending colour stories, mixing styles, and designing for diversity. It is an exciting time to be reimagining ethnic wear. How important is customisation in your offerings today? It is extremely important. Every bride or client we work with has a unique vision, and we are here to bring that to life. From personalised motifs to custom colour palettes, we offer a wide range of bespoke services. It is not just about fit—it is about co-creating an experience. This also deepens the emotional connection our clients have with their garments, which is invaluable in an age of fast fashion. How is the Indian bridal wear industry adapting to the increasing demand for personalisation and experiential shopping among millennials and Gen Z brides? This generation is not buying a lehenga—they are investing in an experience. They want storytelling, transparency, and co-creation. That is why we are not just offering garments—we are curating journeys: from moodboarding sessions and trials to styling workshops with leading names in the industry. The bridal space is becoming less about rules and more about personal narratives, and we are here for that evolution. Frontier Raas has multiple stores across India and abroad. What has been your strategy for expansion—especially with respect to international clientele and the Indian diaspora? Our expansion has been both organic and strategic. While India remains our cultural and emotional base, we recognise the growing appetite for high-quality Indian couture among the diaspora. Cities like London and Dubai have been natural extensions of our clientele, who seek authenticity with global service standards. We tailor each store experience to its audience, ensuring that no matter where you are. The craftsmanship, the warmth, the attention to detail—remains intact. How significant is the role of online retail for a premium ethnic brand like yours? What kind of digital innovations are you currently exploring? Online retail has become integral, especially post-pandemic. Our e-commerce platform now reaches clients across continents. But we see digital not just as a channel, but as a way to enhance experience—through virtual styling sessions, bespoke consultations, and even immersive storytelling around each garment. From virtual styling sessions to occasion-led lookbooks, we are recreating the intimacy of in-store shopping online. Clients receive fit guidance and customisation support, while storytelling-rich product pages deepen their connection to each piece. With streamlined global shipping and NRI-focused services, we are making luxury more accessible—without losing the soul of the experience. What role does digitalisation—such as virtual trials, AR try-ons, or social commerce—play in reshaping how ethnic wear is bought and sold today? Digitalisation is not just changing how ethnic wear is bought; it is transforming how it is experienced. At Frontier Raas, we see tools like virtual styling, immersive lookbooks, and social commerce as ways to bring our craft closer to customers who may never step into a store. It is not about replacing touch and feel; it is about creating bridges. For us, the goal is simple: keep the soul of Indianwear intact, while evolving how the world interacts with it. Has Frontier Raas ever explored or is planning any collaborations with designers or celebrities? We have always believed in thoughtful collaborations that align with our values. While we have had celebrated stylists and artists engage with our brand, we are also exploring partnerships with like-minded designers and cultural voices who can bring fresh narratives to traditional craft. The goal is not just to create hype but to create meaning, reach new audiences, and push the boundaries of what ethnic wear can be. In the age of conscious fashion, how do you incorporate sustainable practices or work towards artisan welfare in the supply chain? Sustainability for us begins with respect—for materials, for time, and most importantly, for people. We work directly with artisan communities across India, ensuring fair wages, safe working conditions, and long-term partnerships. We use natural fibres, reduce fabric waste, and invest in techniques like hand embroidery that have a lower environmental footprint. Every time you buy a Frontier Raas piece, you are supporting not just a craft, but a craftsperson's livelihood and legacy. Sustainability in ethnic fashion is still an evolving conversation. What steps can the industry collectively take to make traditional garments more eco-conscious without compromising on aesthetics? We need to redefine luxury, not as excess, but as excellence in thought and process. That means embracing slow fashion, investing in biodegradable textiles, and encouraging consumers to cherish and repeat-wear pieces. Industry-wide collaboration is also key, whether through shared artisan programmes, sustainable sourcing hubs, or consumer education platforms. We believe sustainability is not a trend, but a responsibility. With the growing global recognition of Indian couture, how can designers and brands better position themselves on the international stage without losing cultural authenticity? The key is to stay rooted. Global audiences are craving authenticity, not diluted versions of tradition. If we continue to lead with craftsmanship, storytelling, and real cultural context, there is no risk of losing identity. The idea is to frame our traditions in formats the world can engage with, that is through design, digital platforms, and meaningful dialogue. What is next for Frontier Raas? Are you exploring new categories, geographic expansions, or experiential concepts like virtual bridal styling? We are looking forward to expanding into more markets, launching exciting collections, and continuing to innovate while staying true to our roots. There is also a big focus on sustainability and celebrating India's craft traditions on an even larger scale. DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of
Economic Times
26 minutes ago
- Economic Times
From intern to ₹2,00,00,00,00,000: How a 28-yr-old techie who interned for 4 years triggered a Google-OpenAI war
Synopsis From interning at five tech firms during college to building a billion-dollar AI startup, 28-year-old Varun Mohan's journey triggered a ₹20,400 crore deal with Google after he rejected OpenAI's ₹25,500 crore offer. His voice-based coding tool, Cascade, sparked a high-stakes rivalry between Google and OpenAI, making him one of the youngest and richest immigrant tech founders today. Varun Mohan Windsurf A 28-year-old Indian-American techie, Varun Mohan, has signed a ₹20,400 crore ($2.4 billion) deal with Google DeepMind after rejecting OpenAI's ₹25,500 crore ($3 billion) offer. The deal sparked a fresh wave of rivalry between the two AI giants and has placed Mohan among the richest immigrant entrepreneurs in the Mohan, born to Indian immigrants in Sunnyvale, California, interned at eight companies -- Quora, LinkedIn, Samsung, Cloudian, and Databricks -- while studying at MIT. These four years of hands-on experience in machine learning, cloud systems, and infrastructure helped him build a strong technical base before he entered the startup space. After graduation, he joined the autonomous vehicle startup Nuro, where he rose to the position of Lead Software 2021, Varun Mohan co-founded Windsurf with his MIT batchmate Douglas Chen. Their company launched Cascade, an AI-native coding platform that allows developers to write and test code by simply speaking to the gained rapid adoption, with over a million developers using it within months. Windsurf raised $240 million and reached a valuation of $1.25 billion. It was later named among Forbes' top 50 AI companies globally. Google and OpenAI were both interested in acquiring Varun Mohan's startup, Windsurf, because of its breakthrough product, Cascade—an AI-native coding environment that allows developers to write, test, and refactor code using natural language. The tool had gained rapid adoption among developers and posed a potential shift in how software is built, making it a strategic asset in the race for dominance in agentic coding and AI-assisted development. OpenAI was close to acquiring Windsurf for $3 billion. However, its primary investor, Microsoft, raised concerns over possible overlaps with GitHub Copilot. As a result, the deal stalled midway. Varun Mohan then accepted Google's $2.4 billion offer. The agreement is not an acquisition. It is a licensing and talent deal, which gives Google DeepMind non-exclusive rights to key Windsurf technologies. Windsurf continues to function as an independent company and can license its tools to other the deal, Mohan, Chen, and a select group from Windsurf's R&D team have joined Google DeepMind to work on agentic coding projects and integrate their systems with Google's Gemini the deal, Forbes added Varun Mohan and Douglas Chen to its 2025 list of richest immigrants. They join a group that includes Sundar Pichai, Satya Nadella, Raj Sardana, and Nikesh Arora.
